Nearly every commercial lines carrier has “profitable growth” as a top-line initiative in 2015 and beyond. In order to succeed in this competitive environment carriers must proactively address key challenges to ensure they positioned protect and grow market share. However, as carriers execute plans to innovate in pursuit of their profitable growth objectives, capability gaps still persist – with the underwriter being stuck in the middle.
When you examine the evolution and use of technology within commercial underwriting, carriers have been successful delivering gains in efficiency and accuracy over the past decade. However, technology solutions have been less successful providing meaningful assistance to the underwriters themselves – and at giving them the tools they need to drive better business results. For example, tasks such as risk selection, evaluation and pricing still rely heavily on the underwriter’s experience and their personal judgment.
The reality is that many commercial carriers have not kept pace with the needs of the modern underwriter. For example, as individuals you and I can leverage technology to:
- Monitor and set our home environment from anywhere in the world using tools like NEST
- Provision car service to our exact location and time in nearly an instant with UBER
- Interact face-to-face with our friends and family instantly using FACETIME
- And, even prequalify a pool of potential significant others based on preferred characteristics using tools like MATCH.com
This is a stark contrast to the capabilities that commercial underwriters still leverage in 2015:
- Reminding themselves of changes in underwriting appetites and best practices using STICKY NOTES
- Manually reviewing underwriting guidelines stored in PDF’s or, worse yet, BINDERS on their credenza
- Collaborate with the right underwriting resources or producers using modern tools like EMAIL
- And, still rely heavily on things like EXCEL to help analyze exposures, price risks, check guidelines, etc.
In today’s fast-changing world, the definition of what underwriting is (or could be) is changing by the day. When carriers consider how rapidly the digital revolution, big data and the Internet of Things are changing the landscape – they may need to look at things from a different perspective. How the industry underwrites a risk today may look very different from the way the industry underwrites risks three, five or ten years from now.
For these reasons, we’ve developed Pega Commercial Lines Underwriting – a workstation designed with the commercial underwriter’s experience in mind. Our Commercial Underwriting workstation combines industry-leading business process rules and workflow functionality with decision-based technology designed to help underwriters improve risk evaluation, comply with underwriting guidelines and collaborate more effectively. Pega’s unified offering helps carriers eliminate gaps in their current underwriting capabilities and modernize their technology support environment on an enterprise scale.
Check out our latest video to see how Pega can help you kick start commercial lines underwriting.
Download the 6 Core Building Blocks of a Commercial Underwriting Platform eBook to discover six technology “building blocks” needed for a next-generation underwriting solution that will provide the power and flexibility to streamline underwriting, offer exceptional customer experiences, and increase sales.